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In reply to the discussion: Senate unanimously approves bill to create tax deduction for cash tips [View all]
wishstar
(5,760 posts)7. Tips won't be exempt from payroll taxes, just federal income taxes
Reports I have read say that in order for tips to be exempt they have to have been reported for payment of appropriate payroll taxes, then the worker can write off the gross amount of tips as a deduction from countable income when they file their tax return.
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Senate unanimously approves bill to create tax deduction for cash tips [View all]
Jose Garcia
May 2025
OP
It isn't clear from anything I can find quickly that this is an itemized deduction or a front page deduction
Ms. Toad
May 2025
#36
The server making a few hundred a night in tips at a nicer place is tax exempt
ClaudetteCC
May 2025
#46
I wonder how many times a month this can be claimed. As a lot of very wealthy people do not have
LiberalArkie
May 2025
#5
Ummmm, this was a proposal endorsed by our 2024 Presidential candidate....... just saying. nt
kelly1mm
May 2025
#25
Candidates running for the 2028 nomination can always campaign on a promise to restore taxes on tips, I suppose.
MichMan
May 2025
#44
Cruz's bill does not require itemization, it includes cash AND credits card tips. Gonna be hard to oppose that.
Silent Type
May 2025
#11
You could read the bill. I'm as certain as I can be it would include credit card tips the employee gets.
Silent Type
May 2025
#20
I believe what you say. "Cash tips" is another instance of very poor reporting by the MSM,
Jack Valentino
May 2025
#24
Have to admit, I wondered too when I first saw "cash." But since checks are considered "cash," I looked it up.
Silent Type
May 2025
#26
No help for the poor low-income hourly bastards who don't get any tips, though...
Jack Valentino
May 2025
#23
Oh, I agree. trump has commented on removing income taxes for all lower incomes. Sure he lied.
Silent Type
May 2025
#29
I'm just waiting now for the owners of said restaurants and bars to start skimming or outright taking tips
Javaman
May 2025
#12
Saw your post earlier and have been thinking about it, I think you are right. A-holes like trump will say
Silent Type
May 2025
#33
True, I laughed hard. Although government level bribes are usually more than $160K
Silent Type
May 2025
#21
LOL. I'd darn sure list it under tips. But, honestly, would you report all of it now?
Silent Type
May 2025
#32
Our Dems HAD to vote for it or the Repubs would've screeched: "The tax-and-spend Democrats are taxing your tips!!!" But
LaMouffette
May 2025
#43
dont matter- they can use that cash to buy bananas and bacon. drill baby drill.
Nimble_Idea
May 2025
#45
Right. I'm sure there are hundreds of thousands of American servers, bartenders and dancers making $160K per annum!
Simeon Salus
May 2025
#53
Well, I'm not going to be super generous anymore with my (post-tax) tip dollars based on my (post-tax)
Wingus Dingus
May 2025
#50